Prepare a correct income statement

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Reference no: EM13906118

The income statement of Garska Co. for the month of July shows net income of $2,720 based on Service Revenue $7,350; Salaries and Wages Expense $2,910; Supplies Expense $950; and Utilities Expense $770. In reviewing the statement, you discover the following:

1. Insurance expired during July of $560 was omitted.

2. Supplies expense includes $240 of supplies that are still on hand at July 31.

3. Depreciation on equipment of $180 was omitted.

4. Accrued but unpaid wages at July 31 of $360 were not included.

5. Service performed but unrecorded totaled $790.

Prepare a correct income statement for July 2014.

Revenues

Service Revenue =

Expenses

Salaries and Wages Expense =

Supplies Expense =

Utilities Expense =

_____________ =

Total Expenses =

Net Income/(Loss) =

Side Note: I am assuming the two blanks under expenses would be insurance expense and depreciation expense. Also, does the net income stated above ($2,720) have to equal the corrected net income?

Reference no: EM13906118

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